How to Build Revenue Through Referrals

Whether you love them or hate them, customer referrals can lie at the core of your inbound sales strategy. Experts, too, agree that there is no better or easier way to build revenue than through getting more referrals.

Despite the importance and effectiveness of customer referrals, many marketers and sales people are using random and outdated methods to get referrals. No wonder their referral strategy fails and doesn’t bring any value to the table.

Let us tell you that referrals need not act as a bane to your existence; rather, they can supercharge your sales and build revenues for your business. In the following section, we will talk about the importance of referrals and some proven referral strategies that are sure to help you achieve your revenue goals for the upcoming sales quarter.

Let’s start.

Get rid of the nomenclature ‘referrals’

What’s in a name, they say, but there is everything in the name. If you keep calling for referrals, the chances are you will not get enough of them. Honestly, not many of your customers are comfortable with its name, and most of them do not know what it means. Some might think you simply need a reference or are asking for some numbers.

Stop confusing your customers and ask them whatever you want directly. For example, an XYZ beauty care company posts on its social media and says, “Suggest our night cream to your mother, aunt, or a colleague. Stand a chance to secure a discount of 20% on your next  purchase.” It is a way of asking for referrals, and instead of iterating the term, you are asking what you want directly.

Don’t be scared of asking

It is time to overcome the fear of asking. When you know your customers are ordering your products, you can ask for an introduction. Do not balk at the prospect while starting a conversation. You will not lose anything by asking for an introduction, but you might lose it by not asking at all.

Even if you are scared to death, you should force yourself into striking up a conversation to prevent any opportunity loss.

Request a referral

When you are asking for a product introduction, do not phrase it as a referral. You can phrase it as a ‘request for help’. Why? Because everyone loves to help. If your customer has bought a product in the past and liked it, they will be too happy to help others by introducing your product to anyone in need.

 

Read More: SalesTechStar Interview with Tony Bailey, COO, InterVision

Make the most of your network

When you are gathering referrals, especially with the intention of building revenues, you should make the most of your network. As a marketer, you should never limit yourself to one group as you ask for introductions.

Along with your existing customers, you can ignite your past customers, former and present colleagues, industry connections, family members, social acquaintances, and many more. The more people you include in your quest for introductions, the better results you are going to achieve.

Be specific about what you want

A big mistake salespeople commit is not being specific about what they want. Start your conversation with a customer with clarity of mind. Questions like, Who do you think might be a good fit for our products? – put customers in a dreadful and burdensome situation. Instead, be specific about the kind of introduction you want.

Remember the example we shared? The XYZ beauty care company is asking a user to introduce their products to a mother, aunt, or any other colleague. As the demographics are specific, the user knows who to suggest the products to.

Ask for referrals at the right time

We said that you shouldn’t feel shy about asking for referrals or introductions, but at the same time, you should be aware of the right time to ask for referrals. Ask too early, and you end up creating the wrong impression. Ask too late, and your customers will simply ignore the request.

While the right time to ask for a referral varies from business to business, we suggest that you can ask for a referral immediately after your customer enjoys a positive experience with your company. For example, the company XYZ, which sells beauty care products, can offer customers the opportunity to gift a friend some samples.

Read More: Revolutionizing Revenue: Challenging 5 Common AI Myths

Wrapping Up

Customer referrals can be the best source of revenue for your business, but use and channel them wisely. Never leave referrals to chance. Consider the strategies we stated, and always take a step to ask for referrals. We are sure that with these strategies, you can take your business revenues beyond the set targets.

Also catch: Episode 199 of The SalesStar Podcast: Top Trends in Modern B2B Marketing with Emily Singer, Head of Marketing at Drift

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